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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available:
Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2024 (the end of Beale's fiscal year), the following pension-related data were available:
Projected Benefit Obligation | ($ in millions) |
---|---|
Balance, January 1, 2024 | $ 600 |
Service cost | 62 |
Interest cost, discount rate, 5% | 30 |
Gain due to changes in actuarial assumptions in 2024 | (14) |
Pension benefits paid | (30) |
Balance, December 31, 2024 | $ 648 |
Plan Assets | ($ in millions) |
---|---|
Balance, January 1, 2024 | $ 620 |
Actual return on plan assets | 40 |
(Expected return on plan assets, $45) | |
Cash contributions | 81 |
Pension benefits paid | (30) |
Balance, December 31, 2024 | $ 711 |
January 1, 2024, balances: | ($ in millions) |
---|---|
Pension asset | $ 20 |
Prior service costAOCI (amortization $6 per year) | 30 |
Net gainAOCI (any amortization over 10 years) | 112 |
Brepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior service cost, the net gain, pension expense, and the net pension asset. Note: Enter credit amounts with a minus sign and debit amounts with a positive sign. Enter your answers in millions (i.e., 0,000,000 should be entered as 10)
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